2019-2024

Committee on the Internal Market and Consumer Protection The Chair

28.1.2021

Mr David McAllister Chair Committee on Foreign Affairs BRUSSELS

Mr Bernd Lange Chair Committee on International Trade BRUSSELS

Subject: Opinion on the decision on the conclusion, on behalf of the Union, of the Trade and Cooperation Agreement between the and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part, and of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information (COM(2020)0856 – C9-0432/2020 – 2020/0382(NLE))

Dear Mr McAllister and Mr Lange,

Under the procedure referred to above, the Committee on the Internal Market and Consumer Protection has been asked to submit an opinion to your committee in the form of a letter.

The Committee on the Internal Market and Consumer Protection considered the matter at its meeting of 28 January 2021. At that meeting1, it decided to call on the Committee on Foreign

1 The following were present for the final vote: (Chair, rapporteur for opinion), Andrus Ansip (Vice-Chair), (Vice-Chair), Maria Manuel Leitão Marques (Vice-Chair), Adam Bielan, Carlo Fidanza, Eugen Jurzyca, Beata Mazurek, Alessandra Basso, , Miroslav Radačovský, Marco Zullo, Pablo Arias Echeverría, Deirdre Clune, , Krzysztof Hetman, Arba Kokalari, Andrey Kovatchev, Antonius Manders, Dan-Ştefan Motreanu, , Tomislav Sokol, Ivan Štefanec, Edina Tóth, Vlad-Marius Botoş, Dita Charanzová, Sandro Gozi, , Morten Løkkegaard, , , , , Adriana Maldonado López, , , Kateřina Konečná, Anne-Sophie Pelletier, , Claude Gruffat, Marcel Kolaja, Kim Van Sparrentak, Hynek Blaško, Virginie Joron and Jean-Lin Lacapelle.

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EN United in diversity EN Affairs and the Committee on International Trade, as the committees responsible, to incorporate the following suggestions into their motion for a resolution.

Yours sincerely,

Anna Cavazzini Chair

PE663.092v01-00 2/5 AL\1223546EN.docx EN SUGGESTIONS

1. Considers that the Internal Market is a main achievement of the Union, has been highly beneficial for all parties’ economies and has created a basis for progress in the quality of life of citizens; stresses that this new era of economic partnership should be oriented towards generating mutually beneficial opportunities and should by no means result in any regression in the integrity and functioning of the Internal Market and the customs union; underlines, in this context, that third countries cannot have the same rights and enjoy the same benefits as Member States, and that distortions in the trade in goods and services, unfair competition and an uneven playing field should be avoided as far as possible within the terms of the agreement; acknowledges that the extension of the facilitations granted to authorised economic operators is an appropriate way forward to avoid distortions in trade;

2. Declares that a robust market surveillance and customs control system and a high level of protection for the rights of EU consumers through effective market surveillance, product traceability, product safety, high quality standards and enforcement mechanisms are key elements in protecting the Internal Market and the citizens of the Union; considers that the mechanisms for the settlement of disputes under the provisions of this agreement need to function in an effective, automatic and swiftly enforceable way so as to constitute a real deterrent against deviations from the agreement;

3. Stresses that the full implementation of the provisions of the Withdrawal Agreement, and in particular the Protocol on Ireland and Northern Ireland, is of the utmost importance for the integrity of the Internal Market and the customs union, which are areas that fall under the responsibility of the Committee on the Internal Market and Consumer Protection; underlines that its implementation is to be considered a cornerstone for the future relationship with the UK and an integral part of the new relationship between the EU and the UK, and as such, should be closely monitored, scrutinised and properly enforced;

4. Considers it to be of capital importance to bring clarity to the system for the determination of goods that are at risk of being imported into the Union, as well as to guarantee unhindered access to the necessary information and physical locations for the agents of the Union in charge of verification of the obligations of compliance with the applicable legislation in the areas of customs, security and safety, and market surveillance, in order for them to be able to perform their duties;

5. Underlines, therefore, that compliance with the protocol is to be considered an integral part of the conditions for benefiting from the facilitations provided for by the agreement on a future relationship, and that failure to fulfil the obligations of the parties as established by the protocol is to be considered grounds for triggering the arbitration procedure and, where relevant, the rebalancing mechanism that allows either side to impose remedial measures to counter situations of unfair disadvantage to the detriment of their businesses and citizens;

6. Notes that trade in services represents an essential contribution to the European economy, and acknowledges that appropriate arrangements on trade in services between the EU and the UK have been found, which include provisions on market access and

AL\1223546EN.docx 3/5 PE663.092v01-00 EN national treatment under host country rules that ensure that EU service providers are treated in a non-discriminatory manner; acknowledges that the arrangements provide for a clear framework on mutual recognition of professional qualifications, which responds to Parliament’s recommendations by preserving the regulatory autonomy of the EU in this area; welcomes the possibility of addressing joint recommendations to the Partnership Council, which may be the basis for arrangements for the recognition of professional qualifications for specific professions without lowering national levels of education; firmly believes that the exclusive competence of the Union should be fully respected in the future and therefore that the conclusion of bilateral agreements on mutual recognition of qualifications between individual Member States and the UK should be avoided;

7. Is dismayed that the extremely late conclusion of this agreement created great uncertainty for consumers and businesses within the EU Internal Market and the UK, and that this had a negative impact on Parliament’s scrutiny activity; insists that the only way to guarantee the achievement of the objectives of the agreement is to ensure its full implementation and effective enforcement, and stresses the importance of the role of Parliament in monitoring this implementation; calls for the Commission to firmly and clearly commit to Parliament to ensuring effective cooperation with and the active involvement of Parliament as regards scrutiny and oversight, and to providing prompt and exhaustive information on the implementation and potential adaptation of the agreement; calls on the Commission, furthermore, to ensure that Parliament will receive adequate and timely information ahead of and after the relevant meetings of the Partnership Council and on regulatory cooperation activities;

8. Underlines that in the implementation process the EU should give special attention to the conformity of the customs checks performed before the goods enter the Internal Market (either coming from the UK or from other third countries via the UK) as envisaged in the agreement, and insists that ensuring the compliance of goods with Internal Market rules is of the utmost importance; stresses the need for greater investment in customs control facilities and for further coordination and exchange of information between both parties in order to prevent trade disruptions as far as possible, as well as to preserve the integrity of the customs union in the interest of consumers and businesses; considers that smooth cooperation between customs and market surveillance authorities is absolutely necessary and raises concerns in particular about the necessary operational capacity of an EU office in Belfast;

9. Notes, with regard to the agreement on digital trade, the importance of facilitating the settlement of cross-border disputes in online trade, and the need for consumers buying online to be properly informed of any additional fees or customs duties that they may have to pay when buying from a UK trader; hopes that the UK will continue to respect EU data standards and can continue to be deemed as having an adequate level of protection for data originating in the Union;

10. Considers that the arrangements on public procurement reached in the agreement can guarantee the necessary reciprocity and non-discrimination provisions in the interests of EU businesses and consumers;

11. Notes that in view of the all-island economy in Ireland, roaming charges may have considerable negative implications in border areas;

PE663.092v01-00 4/5 AL\1223546EN.docx EN 12. Notes that the agreement does not include a dynamic alignment provision, which could have contributed to creating a level playing field in the areas of consumer protection, sustainable standards and competition rules; welcomes, however, the agreement’s non- regression clause, especially in the area of consumer protection, but also in the other relevant areas, as well as the unilateral rebalancing measures which would serve in the event of significant divergences in areas where such divergences materially impact trade or investment; underlines the importance of protecting the EU from potential regulatory divergence by the UK in the future;

13. Calls on the Commission to assess how unfair competitive advantages due to gradually differing regulatory schemes can be prevented and to ensure the continuous development of higher EU standards, such as consumer rights related to digitalisation and sustainability; calls for the swift, effective and equitable enforcement of dispute settlement and remedial measures to maintain the integrity of the Internal Market and to guarantee free and fair competition that does not damage the high quality of EU standards and consumer protection, with a view to ensuring appropriate and proportionate administrative requirements for consumers and businesses, in particular small and medium-sized businesses (SMEs);

14. Notes that consumer habits and consumer confidence in cross-border shopping have already been negatively affected by the uncertainty over the applicable rules and calls on the Government of the UK, the Commission and the Member States to swiftly implement the measures set out in the agreement for the protection of consumers, and to reinforce cooperation between the EU and the UK on various sectoral policies relating to sustainable production methods and product safety; calls for transparency along the product-service supply chain for the benefit of consumers, and declares that prices that reflect the total costs of the purchase, including all relevant applicable fees and duties, and clarity on the applicable consumer rights are key to avoiding friction and fostering the confidence of consumers when purchasing across the border.

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